Excise laws are another indirect taxation legislation administered by the Customs department. Commonly referred to as excise duty instead of tax, this applies to goods manufactured in the country (referred to in the Act as Federation).
Excise duty is applicable to a limited number of goods and these are listed in the Excise Duties Order 2012, Schedule. There are only four type of goods subject to excise duty, rates being different to each of these goods. They are 4 categorys :1. Beer, Wines and Spirits, Fermented beverages, Undenatured Ethyl alcohol; 2. Tobacco products like Cigars, Cigarettes, Smoking tobacco including Water pipe tobacco; 3. Motor vehicles for transport of people, motorcycles and 4. Playing cards and Mahjong tiles.
Excise duties are quite common in other countries too but mostly are applicable to goods that are considered harmful to health, products that relatively wealthy members of society can afford and would contribute to the coffers of the govt or products that need to be controlled for the well being of family and society.

See Wikipaedia on Excise duty : As a deterrent, excise is typically directed towards three broad categories of harm:

- health risks from abusing toxic substances (thus making it a kind of sumptuary tax); typically this includes tobacco and alcoho.l
-environmental damage (thus acting as a green tax); this usually includes fossil fuels (such as petrol).
-socially damaging / morally objectionable activity (thus making it a type of vice tax or sin tax); usually this includes gambling, and can include prostitution (including solicitation and pimping) in places where it is legal.

Monies raised through excise may be earmarked for redress of specific social costs commonly associated with the product or service on which it is levied. Tobacco tax revenues, for example, might be spent on government anti-smoking campaigns, or healthcare for cancer, heart-disease, vascular disease, lung disease, and so on.
Targets of taxation : 1. Tobacco, Alcohol and Gasoline; 2. Narcotics; 3. Gambling; and 4. Prostitution.